Microsoft India Begins First Round Of Layoffs, To Cut R&D Jobs In Bengaluru, Hyderabad

Tech giant Microsoft has begun laying off employees at its India Development Centres, or research and development divisions, in Hyderabad and Bengaluru as part of the global job cuts, sources familiar with the matter told Inc42. 

Earlier this week, Microsoft said that it would layoff 10,000 employees, or less than 5% of its workforce, globally. The US-based company employs 18,000 employees across six locations in India – Ahmedabad, Bengaluru, Chennai, Hyderabad, Gurugram and Pune, as per the company’s website. 

While the number of employees impacted by the layoffs in India could not be ascertained, the sources said that the employees in Bengaluru and Hyderabad were told that they were being laid off after Microsoft CEO Satya Nadella’s announcement of job cuts. Meanwhile, layoffs will also take place at the tech behemoth’s Delhi office, the sources said.

One of the sources said that employees at Microsoft India are expecting more layoffs in the coming months in the marketing and sales divisions.

Responding to Inc42’s queries on the latest developments, a Microsoft India spokesperson directed us to Nadella’s January 18 blogpost, without giving any details about the layoffs in India.

In his post, Nadella said that Microsoft would take a $1.2 billion charge in Q2 related to severance costs, changes to its hardware portfolio, and the cost of lease consolidation, as the tech giant creates higher density across its workspaces.

During his India visit earlier this month, Nadella said that Microsoft would be investing in setting up infrastructure in India, and partner with startups and governments. He also spoke about the need to increase sensitivity at workplaces in the face of layoffs, which have become prevalent in the tech industry.

Did Microsoft India Cut Jobs In October Too?

Sources said that a small round of layoffs happened at the Microsoft Delhi office in October, resulting in the elimination of various content moderation and tech roles at its news vertical, MSN.

“That time around, the layoffs were rather surprising. The impacted employees were gathered by their managers and informed that they will have to resign. They were given a three-month severance package,” a source close to the development said.

Microsoft India did not comment on this. It must be noted that the retrenchments will impact the Indian employees, who are on H-1B visas in the US.

In his blogpost, Nadella said that the impacted employees in the US will receive a variety of benefits, including above-market severance pay, healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days’ notice prior to termination, regardless of whether such notice is legally required. 

“Benefits for employees outside the U.S. will align with the employment laws in each country,” he added. 

The fresh retrenchments at Microsoft have come at a time when the global tech industry is going through a major churn.

Alphabet Inc, the parent company of Google, announced that it would be laying off 12,000 employees, or 6% of its workforce, globally. 

Prior to this, Amazon announced that it would be cutting jobs, impacting 18,000 employees. Inc42 had reported that Amazon’s layoffs will impact various tech, HR and research roles across various verticals and result in the closure of its food, and wholesale distribution business in India.